Vice President, Dr. Mahamudu Bawumia has said former President John Dramani Mahama does not understand the issues that led to the collapse of financial houses in the country.
Dr. Bawumia contends that the National Democratic Congress failed to put measures in place to ensure that financial houses comply with regulations in the financial industry.
He was speaking at a ceremony to launch a 100,000 housing project at Amasaman in the Greater Accra region.
“Has the former President not taken the trouble to learn from the experiences of countries all over the world in financial crisis management? Obviously not! Hence his admission that he has to set up a policy working group on finance and economy that is now studying and analyzing the situation with a view to coming up with pragmatic steps.”
“The former President and his NDC really have nothing useful to offer the Ghanaian people in this regard. The former President will like Ghanaians to believe that he knows how to stabilize the banking sector but he kept banks in their comatose state until they died instead of allowing the regulator to do its work independently as required by the law to administer the prompt interventions that were needed to ensure that the banks recovered. The Bank of Ghana under the current leadership has shown courage by taking the bull by the horn and dealing decisively with the problems created under the government of John Mahama to avert the collapse of the entire system.”
The former President during his interaction with some Ghanaians on social media criticized the state’s handling of the financial sector’s cleanup that resulted in the closure of 420 financial institutions within the last two years.
As part of the BoG’s cleanup of the financial space, it revoked the licences of nine universal banks, 347 microfinance companies of which 155 had already ceased operations, 39 microcredit companies or money lenders, 15 savings and loans companies, eight finance house companies, and two non-bank financial institutions.
Mr. Mahama, among other things, described the crackdown in the financial sector as a “national security threat.”
“The crisis has created major problems in the banking sector and financial sector including deepening the already widely held mistrust and lack of confidence in the system by Ghanaians. It appears to have no end in sight. It has also dealt a significant blow to the indigenous banks because such institutions have no external support to count on.
“While this development appears to be a threat to only the businesses that have been shut down, it is in fact a threat to our national security. The development in the banking and finance system and the matters arising call for grave concern on all who have been affected by this financial sector turmoil especially because it is an issue that threatens the country’s security.”